BREXIT debates had a huge image on the value of the pound on Tuesday, with more “volatility” predicted following a Bank of England speech by Mark Carney today.

Brexit uncertainty caused the value of the pound to fall on Tuesday compared to the euro – and there could be more “volatility” to come. The political landscape again had tangible impacts on the economy as Conservative rebel backbenchers rallied against the prospect of Theresa May’s no-deal Brexit. On Tuesday, a group of MPs voted to limit the power of the Treasury should the UK separate from the EU with no deal, defeating the Prime Minister. The financial obstacle means the Government’s spending power will be curbed should there be no agreement.

Laura added: “The GBP/EUR exchange rate dropped back to €1.110. Bank of England (BoE) Governor Mark Carney is due to speak today and could drive pound volatility if he discusses the bank’s policy plans for 2019.”

Therefore the degree of variation could increase further following the meetings.

The UK’s departure from the EU has had the strongest impact overall on sterling over recent months.

The country is now facing fewer than 100 days to go until the scheduled departure date.

However, Britons do not need to fear Brexit affecting holidays. A Downing Street spokesperson has said it was “categorically untrue” that people had been warned not to book trips beyond March 2019.